CarMax Reports Record Sales for the Fourth Quarter
CarMax reported record sales for the fourth quarter and fiscal year ended February 29, 2004. Comparable store used unit sales rose 5 percent in the fourth quarter and 6 percent for the fiscal year. "We are pleased by our continuing ability to grow market share in a challenging used car market," said Austin Ligon, president and chief executive officer. "Our 6 percent used unit comp growth in fiscal 2004 maintains a double-digit spread versus our estimate of -5 percent average used unit comps for the publicly traded new car dealer groups in calendar 2003.
CarMax opened two superstores during the fourth quarter, entering the Louisville market with a standard superstore and adding a satellite superstore in Las Vegas. The company opened a total of nine superstores in fiscal 2004, including five standard superstores in new, mid-sized markets and four satellite superstores in existing markets.
During the fourth quarter, CarMax sold an integrated Chrysler franchise that had been located at the Southlake used car superstore in Atlanta. During fiscal 2004, the company exited a total of four new car franchises. Disposal plans remain for four Mitsubishi franchises and a Ford franchise. As of February 29, 2004, CarMax had 12 new car franchises, all of which were integrated or co-located with its used car superstores.
In the first quarter of fiscal 2005, CarMax plans to open three standard-sized used-car superstores. The company will enter the Indianapolis and Columbia markets and add its third superstore in the Los Angeles market.
CarMax will release fourth quarter earnings on Tuesday, March 30, 2004, before the market opens.